History is generally a good guide when trying to make sense of
the present or predict the future.
Not so with LatinFinance's quarter century capital
markets league tables. Recent years offer a much better
indication of overall leaders for the entire 25-year
The reason is obvious: rapid expansion of Latin America's
capital markets, and therefore of transaction volume, has taken
place in the past decade, so the tables are necessarily heavily
weighted towards recent history.
This is especially true of debt capital markets, where low
rates and unprecedented global liquidity have in recent years
sent investors looking for yield in Latin markets. It also
applies to equity capital markets, where the markets have more
recently opened up, in spurts, to a wide variety of new
The volumes in the tables are grouped so that currently
existing banks receive credit for deals done by shops they have
acquired, or from which they were re-branded. The tables bring
together data from Dealogic, which has been keeping score since
the early 1990s, as well as the a wealth of information from
Securities Data Co and Capital Data, as stored in early
editions of LatinFinance.
US shops lead debt
Two US shops top the bond tables for cross-border issuance,
thanks to a surge in issuance in recent years.
JPMorgan, and the component banks that contribute to today's
entity, boasts $175 billion from 638 bond deals - nearly 16% of
the volume. It leads in most of the highest volume countries:
Argentina, Brazil, Chile, Colombia, and Mexico.
Citi comes second, having worked on $120 billion worth of
debt issues over the years. Among JPMorgan and Citi's deals'
tally sit several trades for the largest sovereigns,
quasi-sovereigns and blue-chip corporates, topping a billion
dollars. Both banks also boast extensive experience on smaller
deals, covering an expanding variety of sectors and countries.
Deutsche Bank joins in the $100 billion-plus club, with Bank of
America Merrill Lynch and Credit Suisse rounding out the top
five. Brazil accounts for the most volume in the region, with
$357 billion, followed by Mexico with $297 billion. Oil
producers have sold the largest single deals. Petrobras' $11
billion six-tranche offer in May of this year is the region's
largest of the quarter century. It is followed by PDVSA's $7.5
billion sale in 2007, and Petrobras' $7 billion jumbo sold in
2012. Mexico's $6 billion bond sale in 1996 tops the sovereign
charts, while América Móvil's $4 billion deal in
2010 is the region's pure-corporate champ.
Peaks and troughs
Equity sales have been characterized by fits of heavy
deal-making and long silent periods when markets have turned
sour. The volatile environment has pushed banks out of the game
- and encouraged others in - over the years. Credit Suisse sits
at the top of the tables thanks to its consistency and
willingness to stick it out in various countries. It claims $49
billion from 208 deals, or close to 13% of the market share
over the quarter century.
Demonstrating just how heavily Brazil dominates the market -
particularly in recent years - CS is followed by BTG Pactual,
with $37 billion and Itaú, with $34 billion. The Swiss
bank still leads when only Brazilian deals are included, again
followed by Itaú and BTG.
The top three have built up volumes by working on some of
the largest deals through the years. These include the $70
billion Petrobras follow-on in 2010 - the region's largest
ever, even if only the roughly $20 billion market-oriented
portion is counted - Vale's $12 billion follow-on in 2008, and
Santander Brasil's $7.5 billion 2009 IPO.
Citi leads bookrunners in Mexico, and Latin America outside
Brazil. BTG Pactual - which has recently acquired local house
Celfin - leads in Chile.
JPM, Citi also top M&A
JPMorgan also leads the rankings for mergers and
acquisitions, with $404 billion in deals involving a LatAm
acquirer or target. AB InBev's $20 billion purchase of the half
of Mexico's Grupo Modelo it did not own in July 2013 pushed
JPMorgan ahead of Citi.
Both US shops worked on Cemex's $16.7 billion acquisition of
Rinker, announced in 2006. Citi's resumé includes its
own purchase of Banamex for $12.6 billion in 2001, as well as a
$16.8 billion YPF-Repsol tie-up in 1999. JPMorgan also boasts
the 2008 BM&F merger with Bovespa in 2008, for $9
The region's largest deal was the intra-company maneuver of
Telmex into América Móvil in 2010, worth $24
billion. The AB InBev transaction comes in as the largest
intercompany deal, surpassing Vale's 2006 move for Inco at